Which Mistakes Can Lead to Rejection of your Life Insurance Claim?

Securing life insurance in your pocket can surely set your free from the worries of your family's well-being when you are not around them. But, have you thought about the financial security of your family if your life insurance claims get rejected? Insurance claims can be rejected in circumstances where you have not provided the right information while filling up the insurance form, providing the wrong documents, or not reading the fine lines of the insurance document.

While it is essential to choose life insurance plans that offer you the maximum coverage, it is also necessary to check the possibilities where your claim can get rejected.

Mistakes that Lead to Life Insurance Claims Rejection
Suicidal Death

In case the policyholder dies due to a suicide attempt, the nominee will receive only 80% of the accrued sum and will not receive the whole insured sum. However, this rate will vary from the type of life insurance plan. If your plan is unit-linked, the nominee will receive 100% of the assured sum even if the suicide attempt is within 1 year of the policy inception.

False Information

In case you provide false information in the insurance document, intentionally or unintentionally, your claim could be rejected.

Lifestyle Change

If the policyholder is a non-smoker while purchasing the life insurance policy, he/she will have to pay less premiums compared to the ones paid by smokers. In case the policyholder develops the habit of smoking after the policy purchase, he/she needs to intimate about the lifestyle change to the insurance provider. Contrarily, the insurance claim will be rejected in the incident of the policyholder’s death occurred as a consequence of smoking.

Homicide

In the incident of the murder of the policyholder, if the nominee is accused of the same, the insurer will reject the insurance until the nominee is freed from the accusation.

Breaking Laws

In case the policyholder dies due to violating the laws like drunk driving, participation in a crime, etc., the insurance provider has got all rights to reject the life insurance claims.

Natural Calamities

In the incident of the policyholder's death due to natural calamities like earthquake, tsunami, or flood, the insurance claim can be rejected unless the policyholder has chosen separate covers for the same.

Death outside the Boundaries of India

Life Insurance plans are valid even if the policyholder resides outside India. But, for this, the policyholder needs to intimate the insurance provider about the change of residence. Without which the policyholder might reject the claim in case the policyholder dies outside the Indian boundaries.

Adventure Sports

If the policyholder dies while performing adventure sports or other strenuous sports activities, the insurance provider can reject the claim unless the primary insurance policy is not enhanced with additional sports cover.

Terrorist Attacks

Almost all insurance companies in India does not cover deaths caused by terrorist attacks. However, the claim could be settled under the humanitarian basis if the nominee contacts the Insurance Regulatory and Development Authority of India.

Irregular Premium Payment

In the incident of the policyholder's failure of regular premium payment or the policyholder's negligence towards the premium payment leading to a policy lapse, the insurer can reject the claim.

How to Choose the Best Life Insurance?

Bajaj Finserv, one of India's leading financial provider with an FAAA credit rating from CRISIL and MAAA credit rating from ICRA is known for its quick and hassle-free claim settlement procedure. If you apply for life insurance online with Bajaj Finserv, you have an array of options to choose from based on your varying financial requirements.

Also, you can calculate the premiums using the online premium calculator as well as manage your life insurance efficiently through the online portal provided by the company. All you do is submit a quick application form and a few minimal documents. Also, you can make your claims from anywhere using the online portal with Bajaj Finserv!